New Bank Rules from April 1, 2025: ATM Fees, Minimum Balance & 6 Key Changes

April 1, 2025: New Banking Regulations with Big Changes in ATM Fees, Minimum Balance & More

New banking regulations have come into the country that will take effect on April 1, 2025. The regulations will implement some radical changes for the account holders. The rules will be implemented on the terms of ATM withdrawals, terms of savings accounts, reward points of credit cards, and more. The customers should be updated to avoid fines and benefit the most from their banks.

Key Banking Alterations Coming into Effect from 1st April, 2025

1. ATM Withdrawal Fee Modifications
Various banks have changed the ATM withdrawal facility. The frequency of free withdrawal per month is being decreased, especially for transactions at ATMs of other banks. The facility of free three withdrawals per month from other bank ATMs, after which each transaction will attract a fee ranging from ₹20 to ₹25, has been introduced for the customers.

2. Minimum Balance Adjustments
Major banks such as SBI, Punjab National Bank, and Canara Bank have revised their minimum balance norms. The balance will now be based on the location of the account—urban, semi-urban, or rural. Not keeping the mandated balance can attract penalty charges.

3. Positive Pay System (PPS) implementation
To improve security of transactions, several banks are implementing the Positive Pay System (PPS) for payments made by checks exceeding ₹5,000. Customers will have to authenticate information such as check number, date, payee name, and amount prior to processing. This is intended to curb fraud and transactional mistakes.

4. Improved Digital Banking Features
With more emphasis on online banking, banks will introduce sophisticated online facilities and AI-driven chatbots to support customers.Security measures, such as two-factor authentication and fingerprint and facial recognition, will be enhanced to make online transactions more secure.

5. Revision of Savings Account and Fixed Deposit (FD) Interest Rates
Revised interest rates for savings accounts and fixed deposits have been made by some banks. Savings account interest will vary as per the amount in the savings account, hence potentially higher sums may be paid superior interest rates. The charges are intended to give competitive rate of interest and stimulate saving.

6. Revised Credit Card Benefits
Large banks such as SBI and IDFC First Bank are altering their co-branded Vistara credit cards. Benefits such as ticket vouchers, renewal benefits, and milestone rewards will be discontinued. Axis Bank will similarly implement the changes from April 18, 2025, on its Vistara credit card holders.

What Customers Should Do

With these significant banking regulation changes being implemented, the account holders should:

• Verify their bank’s ATM withdrawal limit so as to not incur additional charges.

• Keep the minimum balance required to avoid charges.

• Check the details of checks under the new PPS system before making significant payments.

• Check savings account and FD interest rates for higher returns.

• Change digital banking security settings for secure transactions.

• Re-evaluate credit card privileges and alternatives, if needed.

  These modifications, the banks want to improve security, simplify banking processes, and ease electronic transactions. Customers are recommended to be informed and conform to the new guidelines for easy banking.